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Saudi leaders likely hope that Sultan Haitham will be more amenable to a Saudi-led Gulf, and without U.S. support, Oman may feel pressure to acquiesce or face potential repercussions. Omani officials have privately expressed concerns that Oman could be the next target of a Saudi- and Emirati-led blockade

Despite precipitating the world’s most urgent humanitarian crisis in Yemen, Saudi Arabia has used its military presence there to declare its intention to build a pipeline through the Mahra region and construct an oil port on the Yemeni coast. Saudi Arabia currently ships oil through the Strait of Hormuz and the Bab el-Mandeb strait, whereas the proposed pipeline would allow direct access to the Indian Ocean.

Mahra has close links to the adjacent Dhofar region of Oman, which has long viewed the province as an informal buffer from the instability in other parts of Yemen. Sultan Qaboos offered aid as well as dual citizenship to residents of Mahra as a means of eliminating the potential for another conflict resembling the Dhofar War of 1963-1976, which drew cross-border support from the People’s Democratic Republic of Yemen operating from Mahra into Dhofar

Inhabitants of Mahra have expressed frustration with the presence of both the Saudis and Emiratis, given that these kingdoms’ alleged foes—the Houthis as well as al Qaeda in the Arabian Peninsula—are not present in Mahra

The UAE has taken control of the Yemeni island of Socotra, building a military base in a unique ecosystem nominally protected by UNESCO. The UAE is also building bases in Eritrea and Somaliland as part of a plan to develop a “string of ports” that will allow it to project power and escape possible pressure from Iran in the Persian Gulf.

Other Emirati ambitions include the Musandam Peninsula, an Omani enclave that forms the narrowest point in the Strait of Hormuz. The inhabitants of the peninsula have close ties to the UAE, as Musandam connects geographically to the emirates of Ras al-Khaimah and Fujairah, rather than Oman. Oman’s control of the strategic chokepoint reflects the sultanate’s history as an empire whose territory once stretched from southern Pakistan to Zanzibar. 

The border between Oman and the UAE was only formally demarcated in 2008, but Omanis see a circle of potential threats arising from Emirati activity in or possible designs on Musandam, Mahra, and Socotra.

the UAE may feel that Oman’s new sultan may be more receptive to alignment with Emirati objectives than his predecessor

Oman has failed to significantly diversify its economy

As in many oil-dependent economies, unemployment is high, especially among young people

During the popular uprising of 2011, which brought thousands of Omanis to the street for the first time, the government used its nest egg to pay for a massive expansion of the government payroll.

there are no available resources to try to finance a transition away from oil, and the low price of oil has further impeded the government’s efforts to meet its obligations

Around a third of exports from Jordan and Lebanon go to oil-rich states, which send back wealthy tourists. Kuwaitis, Saudis and Emiratis account for about a third of tourist spending in Lebanon.

The bad news is that these states are moving too slowly. Some have cut their bloated bureaucracies and pared back subsidies. Saudi Arabia recently tripled its value-added tax. But the public sector is still the region’s main employer. Despite talk of diversification, the Gulf’s economies continue to revolve around oil

these reforms will be painful and are harder in bad times

The plans put forward by leaders like Saudi Arabia’s Muhammad bin Salman are tearing up the social contract. Saudis wonder why he doesn’t sell his $550m yacht instead of raising taxes. Anger is growing across the region. For the past century Arabs have been ruled by abusive leaders who hoarded their country’s wealth. Now these leaders are asking their people to make sacrifices and giving them little say in the matter. That is a recipe for continuing unrest and brutal suppression. If Arab rulers want citizens to pay their way, they will need to start earning their consent.

the planet could see a greater temperature increase in the next 50 years than it did in the last 6,000 years combined. By 2070, the kind of extremely hot zones, like in the Sahara, that now cover less than 1% of the earth’s land surface could cover nearly a fifth of the land, potentially placing 1 of every 3 people alive outside the climate niche where humans have thrived for thousands of years. Many will dig in, suffering through heat, hunger and political chaos, but others will be forced to move on

In Southeast Asia, where increasingly unpredictable monsoon rainfall and drought have made farming more difficult, the World Bank points to more than 8 million people who have moved toward the Middle East, Europe and North America. In the African Sahel, millions of rural people have been streaming toward the coasts and the cities amid drought and widespread crop failures. Should the flight away from hot climates reach the scale that current research suggests is likely, it will amount to a vast remapping of the world’s populations.

Migration can bring great opportunity not just to migrants but also to the places they go

Northern nations can relieve pressures on the fastest-warming countries by allowing more migrants to move north across their borders, or they can seal themselves off, trapping hundreds of millions of people in places that are increasingly unlivable. The best outcome requires not only goodwill and the careful management of turbulent political forces; without preparation and planning, the sweeping scale of change could prove wildly destabilizing. The United Nations and others warn that in the worst case, the governments of the nations most affected by climate change could topple as whole regions devolve into war

To better understand the forces and scale of climate migration over a broader area, The New York Times Magazine and ProPublica joined with the Pulitzer Center in an effort to model, for the first time, how people will move across borders

The story is similar in South Asia, where nearly one-fourth of the global population lives. The World Bank projects that the region will soon have the highest prevalence of food insecurity in the world. While some 8.5 million people have fled already — resettling mostly in the Persian Gulf — 17 million to 36 million more people may soon be uprooted, the World Bank found. If past patterns are a measure, many will settle in India’s Ganges Valley; by the end of the century, heat waves and humidity will become so extreme there that people without air conditioning will simply die.

If governments take modest action to reduce climate emissions, about 680,000 climate migrants might move from Central America and Mexico to the United States between now and 2050. If emissions continue unabated, leading to more extreme warming, that number jumps to more than a million people. (None of these figures include undocumented immigrants, whose numbers could be twice as high.)

As with much modeling work, the point here is not to provide concrete numerical predictions so much as it is to provide glimpses into possible futures. Human movement is notoriously hard to model, and as many climate researchers have noted, it is important not to add a false precision to the political battles that inevitably surround any discussion of migration. But our model offers something far more potentially valuable to policymakers: a detailed look at the staggering human suffering that will be inflicted if countries shut their doors.

the coronavirus pandemic has offered a test run on whether humanity has the capacity to avert a predictable — and predicted — catastrophe. Some countries have fared better. But the United States has failed. The climate crisis will test the developed world again, on a larger scale, with higher stakes

Climate is rarely the main cause of migration, the studies have generally found, but it is almost always an exacerbating one.

Drought helped push many Syrians into cities before the war, worsening tensions and leading to rising discontent; crop losses led to unemployment that stoked Arab Spring uprisings in Egypt and Libya; Brexit, even, was arguably a ripple effect of the influx of migrants brought to Europe by the wars that followed. And all those effects were bound up with the movement of just 2 million people. As the mechanisms of climate migration have come into sharper focus — food scarcity, water scarcity and heat — the latent potential for large-scale movement comes to seem astronomically larger.

North Africa’s Sahel provides an example. In the nine countries stretching across the continent from Mauritania to Sudan, extraordinary population growth and steep environmental decline are on a collision course. Past droughts, most likely caused by climate change, have already killed more than 100,000 people there. And the region — with more than 150 million people and growing — is threatened by rapid desertification, even more severe water shortages and deforestation. Today researchers at the United Nations estimate that some 65% of farmable lands have already been degraded. “My deep fear,” said Solomon Hsiang, a climate researcher and economist at the University of California, Berkeley, is that Africa’s transition into a post-climate-change civilization “leads to a constant outpouring of people.”

Our model projects that migration will rise every year regardless of climate, but that the amount of migration increases substantially as the climate changes. In the most extreme climate scenarios, more than 30 million migrants would head toward the U.S. border over the course of the next 30 years

every one of the scenarios it produces points to a future in which climate change, currently a subtle disrupting influence, becomes a source of major disruption, increasingly driving the displacement of vast populations.

rough predictions have emerged about the scale of total global climate migration — they range from 50 million to 300 million people displaced — but the global data is limited, and uncertainty remained about how to apply patterns of behavior to specific people in specific places.

Once the model was built and layered with both approaches — econometric and gravity — we looked at how people moved as global carbon concentrations increased in five different scenarios, which imagine various combinations of growth, trade and border control, among other factors. (These scenarios have become standard among climate scientists and economists in modeling different pathways of global socioeconomic development.)

We are now learning that climate scientists have been underestimating the future displacement from rising tides by a factor of three, with the likely toll being some 150 million globally. New projections show high tides subsuming much of Vietnam by 2050 — including most of the Mekong Delta, now home to 18 million people — as well as parts of China and Thailand, most of southern Iraq and nearly all of the Nile Delta, Egypt’s breadbasket. Many coastal regions of the United States are also at risk.

Around 2012, a coffee blight worsened by climate change virtually wiped out El Salvador’s crop, slashing harvests by 70%. Then drought and unpredictable storms led to what a U.N.-affiliated food-security organization describes as “a progressive deterioration” of Salvadorans’ livelihoods.

climate change can act as what Defense Department officials sometimes refer to as a “threat multiplier.”

For all the ways in which human migration is hard to predict, one trend is clear: Around the world, as people run short of food and abandon farms, they gravitate toward cities, which quickly grow overcrowded. It’s in these cities, where waves of new people stretch infrastructure, resources and services to their limits, that migration researchers warn that the most severe strains on society will unfold

the World Bank has raised concerns about the mind-boggling influx of people into East African cities like Addis Ababa, in Ethiopia, where the population has doubled since 2000 and is expected to nearly double again by 2035

now a little more than half of the planet’s population lives in urban areas, but by the middle of the century, the World Bank estimates, 67% will. In just a decade, 4 out of every 10 urban residents — 2 billion people around the world — will live in slums

El Paso is also a place with oppressive heat and very little water, another front line in the climate crisis. Temperatures already top 90 degrees here for three months of the year, and by the end of the century it will be that hot one of every two days. The heat, according to researchers at the University of California, Berkeley, will drive deaths that soon outpace those from car crashes or opioid overdoses. Cooling costs — already a third of some residents’ budgets — will get pricier, and warming will drive down economic output by 8%, perhaps making El Paso just as unlivable as the places farther south.

High emissions, with few global policy changes and relatively open borders, will drive rural El Salvador — just like rural Guatemala — to empty out, even as its cities grow. Should the United States and other wealthy countries change the trajectory of global policy, though — by, say, investing in climate mitigation efforts at home but also hardening their borders — they would trigger a complex cascade of repercussions farther south, according to the model. Central American and Mexican cities continue to grow, albeit less quickly, but their overall wealth and development slows drastically, most likely concentrating poverty further. Far more people also remain in the countryside for lack of opportunity, becoming trapped and more desperate than ever.

By midcentury, the U.N. estimates that El Salvador — which has 6.4 million people and is the most densely populated country in Central America — will be 86% urban

Most would-be migrants don’t want to move away from home. Instead, they’ll make incremental adjustments to minimize change, first moving to a larger town or a city. It’s only when those places fail them that they tend to cross borders, taking on ever riskier journeys, in what researchers call “stepwise migration.” Leaving a village for the city is hard enough, but crossing into a foreign land — vulnerable to both its politics and its own social turmoil — is an entirely different trial.

I arrived in Tapachula five weeks after the breakout to find a city cracking in the crucible of migration. Just months earlier, passing migrants on Mexico’s southern border were offered rides and tortas and medicine from a sympathetic Mexican public. Now migrant families were being hunted down in the countryside by armed national-guard units, as if they were enemy soldiers.

Models can’t say much about the cultural strain that might result from a climate influx; there is no data on anger or prejudice. What they do say is that over the next two decades, if climate emissions continue as they are, the population in southern Mexico will grow sharply. At the same time, Mexico has its own serious climate concerns and will most likely see its own climate exodus. One in 6 Mexicans now rely on farming for their livelihood, and close to half the population lives in poverty. Studies estimate that with climate change, water availability per capita could decrease by as much as 88% in places, and crop yields in coastal regions may drop by a third. If that change does indeed push out a wave of Mexican migrants, many of them will most likely come from Chiapas.

even as 1 million or so climate migrants make it to the U.S. border, many more Central Americans will become trapped in protracted transit, unable to move forward or backward in their journey, remaining in southern Mexico and making its current stresses far worse.

Already, by late last year, the Mexican government’s ill-planned policies had begun to unravel into something more insidious: rising resentment and hate. Now that the coronavirus pandemic has effectively sealed borders, those sentiments risk bubbling over. Migrants, with nowhere to go and no shelters able to take them in, roam the streets, unable to socially distance and lacking even basic sanitation. It has angered many Mexican citizens, who have begun to describe the migrants as economic parasites and question foreign aid aimed at helping people cope with the drought in places where Jorge A. and Cortez come from.

a new Mexico-first movement, organizing thousands to march against immigrants

Trump had, as another senior government official told me, “held a gun to Mexico’s head,” demanding a crackdown at the Guatemalan border under threat of a 25% tariff on trade. Such a tax could break the back of Mexico’s economy overnight, and so López Obrador’s government immediately agreed to dispatch a new militarized force to the border.

laying blame at the feet of neoliberal economics, which he said had produced a “poverty factory” with no regional development policies to address it. It was the system — capitalism itself — that had abandoned human beings, not Mexico’s leaders. “We didn’t anticipate that the globalization of the economy, the globalization of the law … would have such a devastating effect,”

No policy, though, would be able to stop the forces — climate, increasingly, among them — that are pushing migrants from the south to breach Mexico’s borders, legally or illegally. So what happens when still more people — many millions more — float across the Suchiate River and land in Chiapas? Our model suggests that this is what is coming — that between now and 2050, nearly 9 million migrants will head for Mexico’s southern border, more than 300,000 of them because of climate change alone.

“If we are going to die anyway,” he said, “we might as well die trying to get to the United States.”

In the case of Addis Ababa, the World Bank suggests that in the second half of the century, many of the people who fled there will be forced to move again, leaving that city as local agriculture around it dries up.

Without a decent plan for housing, feeding and employing a growing number of climate refugees, cities on the receiving end of migration can never confidently pilot their own economic future.

The United States refused to join 164 other countries in signing a global migration treaty in 2018, the first such agreement to recognize climate as a cause of future displacement. At the same time, the U.S. is cutting off foreign aid — money for everything from water infrastructure to greenhouse agriculture — that has been proved to help starving families like Jorge A.’s in Guatemala produce food, and ultimately stay in their homes. Even those migrants who legally make their way into El Paso have been turned back, relegated to cramped and dangerous shelters in Juárez to wait for the hearings they are owed under law.

There is no more natural and fundamental adaptation to a changing climate than to migrate. It is the obvious progression the earliest Homo sapiens pursued out of Africa, and the same one the Mayans tried 1,200 years ago. As Lorenzo Guadagno at the U.N.’s International Organization for Migration told me recently, “Mobility is resilience.” Every policy choice that allows people the flexibility to decide for themselves where they live helps make them safer.

what may be the worst-case scenario: one in which America and the rest of the developed world refuse to welcome migrants but also fail to help them at home. As our model demonstrated, closing borders while stinting on development creates a somewhat counterintuitive population surge even as temperatures rise, trapping more and more people in places that are increasingly unsuited to human life

the global trend toward building walls could have a profound and lethal effect. Researchers suggest that the annual death toll, globally, from heat alone will eventually rise by 1.5 million. But in this scenario, untold more will also die from starvation, or in the conflicts that arise over tensions that food and water insecurity will bring

America’s demographic decline suggests that more immigrants would play a productive role here, but the nation would have to be willing to invest in preparing for that influx of people so that the population growth alone doesn’t overwhelm the places they move to, deepening divisions and exacerbating inequalities.

At the same time, the United States and other wealthy countries can help vulnerable people where they live, by funding development that modernizes agriculture and water infrastructure. A U.N. World Food Program effort to help farmers build irrigated greenhouses in El Salvador, for instance, has drastically reduced crop losses and improved farmers’ incomes. It can’t reverse climate change, but it can buy time.

Thus far, the United States has done very little at all. Even as the scientific consensus around climate change and climate migration builds, in some circles the topic has become taboo. This spring, after Proceedings of the National Academy of Sciences published the explosive study estimating that, barring migration, one-third of the planet’s population may eventually live outside the traditional ecological niche for civilization, Marten Scheffer, one of the study’s authors, told me that he was asked to tone down some of his conclusions through the peer-review process and that he felt pushed to “understate” the implications in order to get the research published. The result: Migration is only superficially explored in the paper.

Our modeling and the consensus of academics point to the same bottom line: If societies respond aggressively to climate change and migration and increase their resilience to it, food production will be shored up, poverty reduced and international migration slowed — factors that could help the world remain more stable and more peaceful. If leaders take fewer actions against climate change, or more punitive ones against migrants, food insecurity will deepen, as will poverty. Populations will surge, and cross-border movement will be restricted, leading to greater suffering. Whatever actions governments take next — and when they do it — makes a difference.

The world can now expect that with every degree of temperature increase, roughly a billion people will be pushed outside the zone in which humans have lived for thousands of years

“If we don’t develop a different attitude,” he said, “we’re going to be like people in the lifeboat, beating on those that are trying to climb in.”

the greater the investment in outlandishness, the better. This is because adherence to apparently absurd beliefs means incurring costs -- surviving without electricity, for example, if you are Amish -- which help identify members who are committed to the survival of a group and cannot be lured away. The ease of identifying true believers, in turn, builds trust and galvanizes group solidarity for common defense

Religious issues motivate only a small minority of recorded wars. The Encyclopedia of Wars surveyed 1,763 violent conflicts across history; only 123 (7 percent) were religious. A BBC-sponsored "God and War" audit, which evaluated major conflicts over 3,500 years and rated them on a 0-to-5 scale for religious motivation (Punic Wars = 0, Crusades = 5), found that more than 60 percent had no religious motivation. Less than 7 percent earned a rating greater than 3. There was little religious motivation for the internecine Russian and Chinese conflicts or the world wars responsible for history's most lethal century of international bloodshed.

Although this sacralization of initially secular issues confounds standard "business-like" negotiation tactics, my work with political scientist Robert Axelrod interviewing political leaders in the Middle East and elsewhere indicates that strong symbolic gestures (sincere apologies, demonstrating respect for the other's values) generate surprising flexibility, even among militants, and may enable subsequent material negotiations. Thus, we find that Palestinian leaders and their supporting populations are generally willing to accept Israeli offers of economic improvement only after issues of recognition are addressed. Even purely symbolic statements accompanied by no material action, such as "we recognize your suffering" or "we respect your rights in Jerusalem," diminish support for violence, including suicide terrorism. This is particularly promising because symbolic gestures tied to religious notions that are open to interpretation might potentially be reframed without compromising their absolute "truth."

seemingly contrary evidence rarely undermines religious belief, especially among groups welded by ritualized sacrifice in the face of outside threats

the same logic that makes religious and sacred beliefs more likely to endure can make them impervious to compromise. Based on interviews, experiments, and surveys with Palestinians, Israelis, Indonesians, Indians, Afghans, and Iranians, my research with psychologists Jeremy Ginges, Douglas Medin, and others demonstrates that offering people material incentives (large amounts of money, guarantees for a life free of political violence) to compromise sacred values can backfire, increasing stated willingness to use violence. Such backfire effects occur both for convictions with clear religious investment (Jerusalem, sharia law) and for those that are at least initially nonreligious (Iran's right to a nuclear capability, Palestinian refugees' right of return).

studies by behavioral economist Joseph Henrich and colleagues on contemporary foragers, farmers, and herders show that professing a world religion is correlated with greater fairness toward passing strangers. This research helps explain what's going on in sub-Saharan Africa, where Islam is spreading rapidly. In Rwanda, for example, people began converting to Islam in droves after Muslims systematically risked their lives to protect Christians and animists from genocide when few others cared.

When competing interests are framed in terms of religious and sacred values, conflict may persist for decades, even centuries. Disputes over otherwise mundane phenomena then become existential struggles, as when land becomes "Holy Land." Secular issues become sacralized and nonnegotiable, regardless of material rewards or punishments. In a multiyear study, our research group found that Palestinian adolescents who perceived strong threats to their communities and were highly involved in religious ritual were most likely to see political issues, like the right of refugees to return to homes in Israel, as absolute moral imperatives. These individuals were thus opposed to compromise, regardless of the costs. It turns out there may be a neurological component to such behavior: Our work with Gregory Berns and his neuroeconomics team suggests that such values are processed in the brain as duties rather than utilitarian calculations; neuroimaging reveals that violations of sacred values trigger emotional responses consistent with sentiments of moral outrage.

research in India, Mexico, Britain, Russia, and Indonesia indicates that greater participation in religious ritual in large-scale societies is associated with greater parochial altruism -- that is, willingness to sacrifice for one's own group, such as Muslims or Christians, but not for outsiders -- and, in relevant contexts, support for suicide attacks. This dynamic is behind the paradoxical reality that the world finds itself in today: Modern global multiculturalism is increasingly challenged by fundamentalist movements aimed at reviving group loyalty through greater ritual commitments to ideological purity

This is thankfully starting to change. Women were allowed to vote and run in the country’s first parliamentary elections in 2006.

But since a sizeable majority of UAE residents are not citizens, changes to the participatory power of Emirati women in local politics are likely to do little to redress the more immediate consequences of the gender gap on the nation’s economy and society.

In many ways, the demographics of the UAE’s economy resemble those of frontier America,

But the biggest concern may not be how the global crisis aggravates the surfeit of men; rather how it irritates our shortage of women.

Regardless of whether men start fist fights in shawarma stalls or stage riots over parking, no city can be considered civilised without a feminine touch.As Mr Courtwright suggests, men behave much better when there are women about.

There is some biological evidence to support this: long-term studies of men have found that single men have higher levels of testosterone, the hormone responsible for male attributes and correlated to aggression, than men who are married.

If the Government carries through with big infrastructure projects but offers no support for the service sector and small and medium-sized enterprises, where will women find work?Conversely, as businesses outside of construction cut costs, job losses are likely to fall disproportionately on the already smaller population of women working in the UAE.Economists note that population loss may be one of the biggest risks to the UAE’s economy. It could be argued further that losing one woman has more economic impact than losing one man. Many of the women leaving the UAE, after all, are married to men who have lost their jobs.

Liberal-minded Saudis who can afford to leave the country often cool their heels in London or Washington.

Though most Gulf states weathered the Arab spring without serious unrest, the revolutions elsewhere unnerved them. The UAE stepped up domestic surveillance and rounded up activists. Qatar passed a “cyber-crime” law that is broad and easily abused. Political activity was never encouraged in the Gulf, but after 2011 it was ruthlessly punished.

Barely two years ago young people were flocking home to work with Prince Muhammad. Many found the kingdom’s social strictures stifling. In the crown prince, though, they saw a kindred spirit, a fellow millennial who wanted to reform the economy and culture. He delivered on the latter, permitting women to drive and allowing once-banned cinemas and concerts.“And then everything changed,” says one 30-something who took a government job. Hardly a fire-breathing dissident, she supports the monarchy and the goals of the Saudi-led war in Yemen (if not Saudi tactics there). But after Khashoggi’s murder and the arrests of hundreds of activists at home, she is planning to resign.

In 2016, the military and other security institutions were given exemptions in a new value-added tax (VAT) law enacted as part of IMF-inspired reforms. The law states that the military does not have to pay VAT on goods, equipment, machinery, services and raw materials needed for the purposes of armament, defense and national security.The Ministry of Defense has the right to decide which goods and services qualify. Civilian businessmen complain that this can leave the system open to abuse. Receipts for a cup of coffee at private sector hotels, for example, add 14 percent VAT. Receipts at military hotels do not. Employees at the military-owned Al-Masah Hotel in Cairo told Reuters that no VAT was charged when renting venues for weddings and conferences.

The Ministry of Military Production is projecting that operating revenues from its 20 firms will reach 15 billion Egyptian pounds in 2018/2019, five times higher than in 2013/2014, according to a ministry chart. The ministry does not disclose what happens to the revenues. The chairmen of two of the firms said profits go to the ministry or are reinvested in the business.

“I don’t want to be a local shop. I want to be a company that has the capacity to export and compete internationally.”

Egypt’s military, the biggest in the Arab world, has advantages.It enjoys financial support from Saudi Arabia and the United Arab Emirates, staunch supporters of Sisi since he toppled the group they see as a threat to the Middle East, the Muslim Brotherhood. Western powers see Cairo as a bulwark against Islamist militancy. Egypt receives $1.3 billion in military aid annually from the United States alone.

Among projects the Ministry of Military Production announced in 2017 was a plan to plant 20 million palm trees with an Emirati company and build a factory to make sugar from their dates. It agreed with a Saudi company to jointly manufacture elevators. The military inaugurated the Middle East’s biggest fish farm on the Nile Delta east of Alexandria.

The Ministry of Military Production signed a memorandum of understanding with China’s GCL Group last week to build a solar panel factory worth up to $2 billion. The military has taken over much of the construction of intercity roads from the Ministry of Transport and now controls the toll stations along most major highways.

Economists and investors say reforms tied to a $12 billion three-year IMF program signed in Nov. 2016 should lay the ground for economic expansion. But foreign investors are still shying away from Egypt, apart from those focusing on the more resilient energy sector. Non-oil foreign direct investment fell to about $3 billion in 2017 from $4.7 billion in 2016, according to Reuters calculations based on central bank statistics.  

foreign investors were reluctant to invest in sectors where the military is expanding or in one they might enter, worried that competing against the military with its special privileges could expose their investment to risk. If an investor had a business dispute with the military, the commercial officer said, there was no point in taking it to arbitration. “You just leave the country,” he said.

The chairmen of two military engineering companies, Abu Zaabal Engineering Industries Co and Helwan Engineering Industries Co, said in recent years it had become much easier to access financing through the Ministry of Military Production.

In 2015, the defense minister issued a decree exempting nearly 600 hotels, resorts and other properties owned by the military from real estate taxes

Military companies receive an exemption from import tariffs under a 1986 law and from income taxes under a 2005 law. Cargoes sent to military companies do not have to be inspected.

At bustling Cairo squares, people line up to buy subsidized meat and other food handed out from trucks sponsored by the military. Sisi said he had instructed the military to enter the market “to supply more chicken to push down prices.”Some disagree with such measures on the grounds the military’s mission is to protect the country from external threats.“We have reached a point where they are competing even with street vendors,”

The militias that support the GNA are too quarrelsome and undisciplined to mount a sustained campaign. Misrata, home to some of the most powerful armed groups, supports the GNA but is a separate centre of power

In the east General Haftar stokes fear of a Turkish-backed Islamist threat. But Tripoli is 1,000km away. Many of the east’s 2m or so people, though hungry for more autonomy, grumble about the high cost of the war. The LNA consumes a third of the east’s budget. Some 7,000 of its men have been killed in the past year.

“We do not approve the statement that Field-Marshal Haftar will now single-handedly decide how the Libyan people should live,” said Sergei Lavrov, Russia’s foreign minister. Russia and others are preoccupied with covid-19 and may be questioning whether access to Libya’s oil is worth all the trouble given lower prices. Still, Russia has sent mercenaries to fight the GNA, and the UAE’s support for General Haftar is increasing.

Erdogan, the president of Turkey, is challenging their influence in the eastern Mediterranean. In November he signed a pact with the GNA’s prime minister, Fayez al-Serraj, committing to defend Tripoli in exchange for gas-exploration rights in Libya’s waters. Since then Turkish arms and intelligence, as well as 4,000 fighters from Turkish-controlled parts of Syria, have shifted the balance on the ground in Libya. From the sky Turkish drones have been striking General Haftar’s long supply lines.

the head of the UN mission in Libya, Ghassan Salame, bowed out in March. “I can no longer continue with this level of stress,” he said. His successor, as yet unnamed, will be the fourth person to hold the job since 2014. Trying to put Libya back together is an exhausting task

The Taliban are opposed to the Islamic State and actively fight against them, but that has not changed their relationship with al-Qaeda. So, though unlikely to conduct terrorist attacks themselves, the Taliban are also unlikely to clamp down on al-Qaeda. The experience of U.S. retaliation for the 9/11 attacks has done little to chasten them, partly since they believe they have defeated the United States. In their minds, they taught us a lesson, not the other way around. Indeed, the Taliban promise in the Doha talks to prevent attacks on other countries from their soil parrots the assurance Mullah Omar gave before 2001 that Osama bin Laden would do no harm to the outside world.

The fact that a president cannot discount an attack does not mean that the United States must stay in Afghanistan. How do we know preventing attacks is worth billions of dollars per year in operational expenses and some number of fallen Americans? Key variables that a president would want to weigh for that decision are unknown and likely to remain unknown: How soon might an attack occur? Will it be within the next election cycle? How big will an attack be? Will it be another 9/11 or a smaller scale Islamic State-style event? How often will attacks occur? Can very limited interventions (like an airstrike on an al-Qaeda base) prevent them? The answers are highly subjective because they demand looking years into the future under different circumstances than today. What to do consequently depends more on point of view and risk tolerance than evidence.

Although critics argue that Afghanistan is only one of several terrorist safe havens facing the United States and deserves no special treatment, a very convincing case can be made that, as the home of the jihad, Afghanistan would be a source of inspiration for new recruits and a rallying point for foreign fighters

even small-scale terrorist attacks in the United States could breed paranoia and racism at home. Billions of dollars in operational expenses abroad may conceivably be worth preserving liberties.

The United States faces many threats, not all in the security realm. Why should such a high level of funding be devoted to dealing with one particular threat of unknown timing, scale and frequency? The funds could be better spent elsewhere. Additionally, the United States is a resilient nation. Americans suffer human loss every day and endure, and periodic terrorist attacks would be no different. It is even possible that U.S. homeland defenses, which have matured since 2001, could deflect an attack. From this point of view, spending billions in Afghanistan is a luxury, a high-end insurance policy against an exaggerated risk

The U.S. president and the American people need to decide if a terrorist threat of unknown timing, magnitude and frequency is truly so worrisome that it warrants spending billions and losing American lives.

The tricky thing is that as long as casualties on U.S. soil risk domestic backlash, presidents will find it hard to escape Afghanistan. If we want out, we need to temper our sensitivity to tragic albeit perhaps bearable terrorist attacks. Only our own fears dictate that we must stay in Afghanistan.

Sudan wasn’t following the script of Bahrain, where the demonstrators dispersed after a single crackdown, or Egypt, where the army took control through co-option and repression.

A major split between Saudi Arabia and the UAE was on show in July when the latter abruptly withdrew most of its forces from Yemen. No official explanation was given, but the decision was evidently not coordinated with Saudi Arabia, which remains bogged down in an intractable war. The UAE’s decision also shows it can be mercurial and that its policies towards the Horn of Africa may be less strategic and more opportunistic than commentators have assumed.

Egypt prides itself on understanding Sudan and sees Saudi Arabia and UAE as newcomers seeking influence solely by dispensing money. Egypt limited its demands on Sudan to handing over Egyptian Islamists in exile, suspending the deal for Turkey to develop a naval base, and ceding its territorial claim to the Halaib Triangle.

As Arab countries find themselves pulled in to the internal negotiations among the Sudanese, they will face another potential point of contention. Sudan doesn’t just need democracy, but peace. This means a role for the Islamists both in Khartoum and the provinces. For a decade, the custodian of the Darfur peace process has been Qatar, the troika’s arch rival, and it will be impossible to ignore Qatar’s role or that of Sudan’s diverse constituency of Islamists. Some of these dynamics are already playing out and reveal the lack of a common strategy among the Arab troika

After the secession of South Sudan in 2011, Sudan lost 75% of its oilfields and an even greater proportion of its hard currency earnings. The following year, it literally struck gold and within a few years, gold was providing 40% of Sudan’s exports. As much as a third of it, however, came to be smuggled to Libya, Chad or directly by plane to the region’s biggest gold market in Dubai. The government in Khartoum, desperate to control the commodity, responded by using the Central Bank of Sudan as its sole buying agent, paying above the market price to gold traders and printing money to cover this outlay. Buying gold to convert to hard currency became the engine of Sudan’s inflation, which skyrocketed. By 2018, the price of essential commodities such as bread and fuel was so high relative to stagnant wages that the people across the country took to the streets to protest.

Hemedti. His RSF militia controls the gold mines and he personally owns a number of concessions. Through Sudan’s monetary policy, vast resources were transferred from wage earners in the centre of the country to militiamen and gold traders in the peripheries

Hemedti has also benefited massively from providing mercenaries, which may be Sudan’s second biggest source of foreign exchange today. A few months after the Saudis launched their war in Yemen in March 2015, Sudan volunteered to send troops. The first contingent was a battalion of the regular army, but then Hemedti struck a parallel deal to dispatch several brigades of RSF fighters. Within a year, the RSF comprised by far the biggest foreign contingent fighting in Yemen with at least 7,000 militiamen. Hemedti was paid directly by Saudi Arabia and the UAE for this service. He says he deposited $350 million in the Central Bank, but has not said how much he kept to himself for his own enrichment or political spending.

the Central Bank of Sudan has become an instrument for Hemedti’s political finance. And since becoming the central actor in Sudan’s ruling cabal in April, he has exerted an even tighter grip on gold production and exports while moving aggressively into other commercial areas. He has increased the RSF’s deployment in Yemen and sent a brigade to fight in Libya alongside General Khalifa Haftar, who is backed by Egypt and the UAE, almost certainly in return for Emirati financial rewards. Hemedti is also expanding his family business conglomerate, the Al-Junaid companies, and running his political business on the basis of personally handing out cash to key constituents such as tribal chiefs, the police, and electricity workers.

none of this addresses Sudan’s macroeconomic crisis: its rampant inflation, rapidly increasing arrears on international debt, and ostracism from the dollar-based international financial system

Sudan’s Gulf patrons are bailing out the country with a $200 million monthly subsidy in cash and commodities, but the bailout amounts needed will quickly become too big even for the oil-rich Gulf States’ deep pockets

a clash between Hemedti’s political market logic and Sudan’s macroeconomy is looming.  The Sudanese technocrats associated with the FFC are well aware of this, which is why the economists called upon to put themselves forward for cabinet positions have been reluctant to agree. There is a race between Hemedti’s consolidation of power and a re-run of the economic crisis and protests that led to al-Bashir’s downfall.

as Sudan’s economic crisis deepens, they will have to turn to the IMF and western creditors for assistance

Reactions to Emirati acquisition of the F-35 have largely focused on whether Israel will support such a sale and the related requirement in U.S. domestic law to ensure Israel’s military superiority against all other countries in the Middle East. The longstanding policy term, later codified in law, is “qualitative military edge.” From the Emirati point of view, if they have entered into full diplomatic relations with Israel — with a promised “warm peace,” in the words of Emirati officials — and both countries share the same threat perspective, then Israel should have confidence that these advanced weapons will not be turned against it and should therefore not object to the sale. Moreover, unlike Egypt and Jordan, the United Arab Emirates has never attacked Israel.

Weapons sales are a leading area of competition in the Middle East, and in the words of the former Acting Assistant Secretary for Political-Military Affairs Tina Kaidanow: Arms transfers are foreign policy. When we transfer a system or a capability to a foreign partner, we are affecting regional — or foreign internal — balances of power; we are sending a signal of support; and we are establishing or sustaining relationships that may last for generations and provide benefits for an extended period of time.

selling the F-35 to the United Arab Emirates would say much more about the Washington’s partnership with Abu Dhabi than it would about the evolving Emirati-Israeli relationship

Selling the F-35 to a country ought to be a signal that the United States has the highest measure of confidence in that country’s warfighting capabilities, decision-making on the use of force, and commitments to protecting sensitive technology. The Emirati record on each of these issues does not, however, inspire the highest confidence. The record is mixed.

As former government officials serving in the State and Defense Departments as well as in Congress, we are confident that the process going forward will be messy and time-consuming, specifically because the current case breaks precedent in so many ways.

Since the Yemen war’s inception in 2015, members of Congress have raised concerns about the conflict and U.S. support for the Saudi-led coalition, in which Abu Dhabi was a partner and to which it contributed forces until withdrawing in the summer of 2019. These concerns, and the Trump administration’s refusal to address them, culminated in Congress mandating a report on steps taken by both governments to reduce civilian casualties and comply with laws and agreements governing the use of U.S.-origin weapons — indicating skepticism that either country was doing so

Reflecting a long-held U.S. policy view, during his nomination hearing Washington’s envoy to Abu Dhabi noted that the country “is a moderating and stabilizing force in one of the world’s most volatile regions.” The United Arab Emirates stands out among other militaries in the region for having contributed military forces to many U.S.-led coalitions since the first Gulf War — Kosovo (late 1990s), Somalia (1992), Afghanistan (since 2003), Libya (2011) and the anti-ISIL coalition (2014 to 2015). Indeed, Jared Kushner set a new precedent for framing the American-Emirati partnership when he effectively equated it with that of America and Israel, terming them comparably “special” during his most recent visit to the Middle East.

Emirati regional policies have been the subject of increasing congressional concern in recent years, largely focused on the country’s actions in Yemen and Libya. Since the beginning the Saudi-led coalition’s 2015 intervention in Yemen, most congressional action focused on the Saudi role in the conflict and not the Emirati one. But in 2018, congressional concern peaked in response to Emirati plans to launch an offensive to seize the Yemeni port of Hudaydah. The Trump administration subsequently declined to provide military support for the Emirati operation, given the risks of worsening an already severe humanitarian crisis, concerns regarding the complexities of the proposed military operation, and the likelihood of mass civilian casualties

In both Yemen and Libya, Abu Dhabi has not succeeded in leveraging its robust military investments toward political processes that would end the conflicts. In both contexts the divergent policies of the United States and United Arab Emirates — including use of military force, conduct in combat, and utilization of U.S. defense articles — should be considered as part of the F-35 deliberations.

competitors in the global arms export industry — particularly Russia and China — also leverage arms sales, but by and large with no strings attached for their use. Both governments use arms sales to challenge U.S. market dominance and to undermine American partnerships in the region

protecting Israel’s military superiority consists of both legal requirements and longstanding political and process steps that, while not mandated by law, have paved the way for decades of bipartisan congressional consent to arms sales in the Middle East, including of advanced fighter aircraft. The requirement to protect Israel’s “qualitative military edge” is enshrined in 2008 naval vessel transfer legislation, although it had been implemented as a matter of policy between Washington and Jerusalem since the 1973 Arab-Israeli war.

Presumably, the United Arab Emirates and Israel entering into formal relations affirms that the former does not pose such a military threat. The Israeli perspective at the moment, however, has been complicated by the continuing murk over whether Prime Minister Benjamin Netanyahu blessed the U.S. commitment to sell the Emirati government the F-35 — without the knowledge of his own defense minister. Tensions in Netanyahu’s fragile governing coalition and a larger uproar in Israel’s defense establishment have prompted an awkward pas de deux among American, Emirati, and Israeli officials. Netanyahu — responding to concerns raised by the Israeli defense establishment — stated emphatically during an Aug. 24 joint press conference with Secretary of State Mike Pompeo that he had not consented to any arms deal as part of normalization. Given Netanyahu’s close relationship with Trump, it is safe to say that no one in either country finds this claim credible. The public spat over Israeli consent to Emirati acquisition of the F-35 escalated when Netanyahu publicly vowed to go to Congress in opposition to the sale, and the United Arab Emirates in response cancelled a planned meeting between the Israeli and Emirati ambassadors to the United Nations.

extensive discussions should be expected between Israeli and U.S. technical and military experts to agree on the appropriate mix of offsets to ensure Israel’s military superiority. The offsets may involve discussions of quantity (how many F-35s the Emiratis will acquire versus the Israelis), technical variations in the F-35 platform, or additional sales and assistance to Israel. This challenge is not insurmountable, but it will be time-consuming and extend pass the upcoming American electoral cycle

The standard for this level of consultation with Israel before moving forward with arms sales packages to others in the region was set by the Obama administration — first in 2011 with the sale of F-15 fighter jets to Saudi Arabia, and later in 2013 with the sale of F-16 fighter jets to the United Arab Emirates along with stand-off weapons to both the Saudis and the Emiratis. Concurrent with 2013 sales, the Obama administration negotiated a package for Israel to maintain its military edge that included V-22 Osprey aircraft, advanced refueling tankers, and anti-air defense missiles.

Though Israel has no legal right to  block the United States from selling a weapon to another country in the Middle East, Israeli support is critical, particularly during the period of congressional notification. Members of Congress on both sides of the aisle will consult with the Israeli government, and will prefer to support a sale that earns a clear green light from the Israeli government. Members are likely be left unsatisfied by ambiguous and lukewarm Israel responses to the question of selling the F-35 to the Emiratis, precisely because technical talks have not yet begun. All parties risk being stuck between the divisive politics of the moment, and the deliberative, lengthy policy considerations that such arms transfer packages usually entail, opening the door to a further erosion of bipartisanship on a key issue of national security importance — the what, when, and how of a decision by the United States to provide advanced weapons systems to partner states in the Middle East.

Arab capitals are closely following whether the United States will follow through on its apparent commitment to sell the F-35 (and assorted other high-end systems) to Abu Dhabi, and whether American deliverables are sufficiently compelling to consider bringing their own relations with Israel into the daylight

The historical record from Egypt to Jordan and now the United Arab Emirates — across administrations of both political parties — is that formal relations with Israel facilitate strategic consistency from Washington

Will Egypt and Jordan request the F-35 in light of their existing peace treaties with Israel? Will countries in closer geographic proximity, like Saudi Arabia, request the F-35 and additional advanced U.S. weapons as part of their normalization package?

For Israel, Iran and Turkey represent sobering examples in that regard — previously solid security partners within seemingly stable governance structures that became hostile.

military edge risks eroding as Arab governments, whether blocked from purchasing certain weapons from the United States or in addition to acquiring them, turn to China, Russia, and other weapons exporters not obligated to maintain Israel’s military superiority

Competition in the Middle East between the United States and its adversaries is intensifying — particularly in the weapons sales arena

Washington may find itself in an escalating — and unsustainable — cycle of supplementing and upgrading support, technology, and other military offsets to Israel.

Oil’s violent geopolitics is often assumed to result from the immense power its natural scarcity affords to those who can control it. Recent developments in global hydrocarbon markets, which saw negative prices on April 20, 2020 have once again put this scarcity myth to bed

In a series of studies that began in late 1980s, economists Jonathan Nitzan and Shimshon Bichler charted the extent to which the world’s leading oil companies enjoyed comparatively handsome rates of returns on equity—well ahead of other dominant sectors within North Atlantic capitalism—when major wars or sustained unrest occurred in the Middle East.

When oil prices began to collapse in the mid-1980s, the major oil companies witnessed a 14-year downturn that was only briefly interrupted once, during the 1990-1991 Gulf War.

The events of September 11, 2001, the launching of the global war on terror and the 2003 Anglo-American invasion of Iraq reversed the fiscal misfortunes of the North Atlantic oil companies in the previous decade. Collectively, they achieved relative returns on equity several orders of magnitude greater than the heyday of 1979 to 1981. As oil prices soared, new methods of extraction reinvigorated oil production in Texas, North Dakota, Pennsylvania and elsewhere. In effect, war in Iraq made the shale oil revolution possible

fracking—not only benefitted from sky-high oil prices, generous US government subsidies and lax regulation, but also the massive amounts of cheap credit on offer to revive the economy after 2008

In response to the Soviet invasion of Afghanistan and the Iran hostage crisis, the Carter Doctrine declared America’s intent to use military force to protect its interests in the Gulf. In so doing, Carter not only denounced “the overwhelming dependence of the Western democracies on oil supplies from the Middle East,” but he also proposed new efforts to restrict oil imports, to impose price controls and to incentivize more fossil fuel extraction in the United States, all in conjunction with solidifying key alliances (Egypt, Israel and Pakistan) and reinforcing the US military presence in the region.[5] In effect, America would now extract geopolitical power from the Middle East by seeking to secure it.

In denouncing certain governments as “pariahs” or “rogue states,” and in calling for regime change, American policy has allowed those leaders to institute permanent states of emergency that have reinforced their grip on power, in some cases aided by expanded oil rents due to heightened global prices

A 2015 report by the Public Accountability Initiative highlights the extent to which the leading liberal and conservative foreign policy think tanks in Washington—the American Enterprise Institute, Atlantic Council, Brookings, Cato, Center for Strategic and International Studies (CSIS), Council on Foreign Relations and Heritage Foundation—have all received oil industry funding, wrote reports sympathetic to industry interests or usually both

For some 50 years, the United States has been able to extract geopolitical power from Middle Eastern oil by posing as the protector of global energy security. The invention of the concept of energy security in the 1970s helped to legitimate the efforts of the Nixon, Ford and Carter administrations to forge new foundations for American hegemony amid the political, economic and social crises of that decade. In the wake of the disastrous US war efforts in Korea and Southeast Asia, Henry Kissinger infamously attempted to re-forge American hegemony by outsourcing US security to proxies like Iran under what is referred to as the Nixon Doctrine. At the same time, regional hegemons would be kept in check by “balancing” competing states against each other.

The realization of Middle Eastern insecurity was also made possible by the rapid and intensive arms build-up across the region in the 1970s. As oil prices skyrocketed into the 1980s, billions of so-called petrodollars went to purchase arms, primarily from North Atlantic and Soviet manufacturers. Today, the Middle East remains one of the most militarized regions in the world. Beyond the dominance of the security sector in most Middle Eastern governments, it also boasts the world’s highest rates of military spending. Since 2010, Middle Eastern arms imports have gone from almost a quarter of the world’s share to nearly half in 2016, mainly from North Atlantic armorers.

For half a century, American policy toward the Middle East has effectively reinforced these dynamics of insecurity by promoting conflict and authoritarianism, often in the name of energy security. High profile US military interventions—Lebanon in 1983, Libya in 1986 and 2011, the Tanker Wars in the late 1980s, the wars on Iraq in 1991 and 2003, Somalia in 1993, Afghanistan since 2001, the anti-Islamic State campaign since 2014 and the Saudi-Emirati war on Yemen since 2015—have received the most scrutiny in this respect, alongside the post-2001 “low intensity” counterterrorism efforts worldwide

cases abound where American policy had the effect of preventing conflicts from being resolved peacefully: Trump’s shredding of the 2015 Joint Comprehensive Plan of Action (JCPOA) nuclear agreement with Iran comes to mind; the case of the Israeli-occupied Palestinian territories and the Moroccan-occupied Western Sahara have likewise become quintessential “peace processes” that have largely functioned to prevent peace.

the myth of authoritarian stability

A year after the unexpected 2011 uprisings, the IMF’s former director Christine Lagarde admitted that the Fund had basically ignored “how the fruits of economic growth were being shared” in the region

What helps make energy security discourse real and powerful is the amount of industry money that goes into it. In a normal year, the oil industry devotes some $125 million to lobbying, carried out by an army of over 700 registered lobbyists. This annual commitment is on par with the defense industry. And like US arms makers,[9] the revolving door between government, industry and lobbying is wide open and constantly turning. Over two-thirds of oil lobbyists have spent time in both government and the private sector.[10]

From 2012 to 2018, organized violence in the Middle East accounted for two-thirds of the world’s total conflict related fatalities. Today, three wars in the region—Syria, Iraq and Afghanistan—now rank among the five deadliest since the end of the Cold War. Excluding Pakistan, the Middle East’s share of the worldwide refugee burden as of 2017 was nearly 40 percent at over 27 million, almost double what it was two decades prior.

profound political and financial incentives are accumulating to address the existing glut of oil on the market and America’s declining supremacy. A major war in the Middle East would likely fit that bill. The Trump administration’s temptation to wage war with Iran, change Venezuela’s regime and to increase tensions with Russia and China should be interpreted with these incentives in mind.

While nationalizing the North Atlantic’s petroleum industries is not only an imperative in the fight against climate change, it would also remove much of the profit motive from making war in the Middle East. Nationalizing the oil industry would also help to defund those institutions most responsible for both disseminating the myths of energy security and promoting insecurity in the Middle East.

the central bank’s reserves, which include domestic borrowing from local banks, now stand at minus $5bn, a historic low as of 2 June. Experts are fearful of a balance of payments crisis if Ankara continues to follow the same route.

“There was an avalanche of phone calls from current and former ministers, MPs and everyone you could think of to Simsek to accept Erdogan’s offer and come in as the economy minister,” one source familiar with Simsek’s negotiations with the president told Middle East Eye. “They were telling him that he has to save the Turkish economy.” The source said in the end Simsek had to accept the offer: you can only say no to Erdogan so many times.

There are concerns among international investors and local economists that Erdogan could fire Simsek in the near future if an aggressive interest rate hike slows growth and costs jobs ahead of next year’s municipal elections. Erdogan is determined to recapture Istanbul, Ankara and Antalya from the opposition.

Erdogan is known for appointing rivals into key positions to use them as checks on each other.

People close to Simsek also told MEE that soon after taking office, the new finance minister told his circle that the economic situation was worse than he had imagined.

Leaks reveal insiders’ growing uneasiness, which points to the elephant-in-the-room question: Will MBS’ grandiose venture bankrupt the kingdom?

Saudi private investors will also be encouraged to pitch in during a potential public listing of Neom in 2024. That raises questions about how consensual this private investment will be. Indeed, Saudi Arabia reportedly “bullied” several of the kingdom’s wealthiest families to become cornerstone investors out of “patriotic duty” in the IPO of Saudi energy firm Aramco in 2019.

a large chunk of Saudi money carefully set aside for decades to fund the transition to a post-oil era will pay for Neom's astronomical price tag. A bet on an unproven vision

“Infrastructure spending is like doing lines of cocaine; you have to do bigger and bigger and bigger lines just to feel high,”

Neom’s initial burst of economic activity, if unsustainable at a similar pace, would simply be "stealing" future economic benefits to create an illusion of growth right now

perhaps the motive is not sustainable growth at all, but creating what Pettis calls a "pyramid effect." This would be an attempt to copy monarchs of ancient Egypt who redistributed wealth to the population through jobs – paid laborers built Egyptian pyramids, not slaves. Although Saudi Arabia’s oil wealth is already redistributed to ordinary Saudis through public-sector jobs and subsidies, a large tranche is retained and stored in its sovereign wealth funds and U.S. Treasuries. In theory, flushing Saudi citizens with cash would stimulate the local non-oil economy. But in practice, the pyramid effect is likely to first and foremost cause economic leakages, as the kingdom imports most of what it consumes locally, including labor, despite the “Saudification” of the labor market being one of Vision 2030’s key priorities. Migrant workers account for about 77 percent of private sector jobs. At Neom, highly paid Western consultants are toiling to match MBS’ demands, and Asian low-income workers are building it, remitting Saudi money home.

Riyadh sweetened the project’s launch party with a flurry of social reforms, such as lifting the ban on women driving. (Saudi Arabia was the last country in the world to lift this kind of ban, and it didn’t do so as a principled stand on behalf of women’s rights.) The idea was not only creating a buzz among investors and the global public, but whipping up aspirational momentum among Saudis.

60 skyscrapers that were built in Riyadh’s financial center are still standing largely empty.

MBS, high on his visionary self-branding and his concentration of power, may have to pay the costs of bankruptcy – whether by admitting full responsibility or via a renewed deployment of decidedly imperious and despotic tactics to crush dissent. The latter path is, of course, what the late Shah of Iran chose, with notorious results.

many of the region’s youth have become immobilized by revolutionary fatigue left by the tragic, violent trauma of the Arab Spring’s aftermath

Breakthroughs in surveillance methods are allowing intelligence outfits across the Middle East to infiltrate just about every crevice of civil society, making it almost impossible to communicate or organize without the government’s knowledge. Some of the most sinister of these weapons have been manufactured in Israel, which has emerged as a leading global exporter of surveillance technologies that are now being deployed against oppressed populations worldwide.

The prospect of acquiring dystopian surveillance tech like Pegasus has become a driving motive for authoritarian Arab leaders in their rush to normalize relations with Israel, against the will of their people

While arming themselves with the latest repressive tools, autocratic regimes across the Middle East continue to be encouraged by their external benefactors to prioritize security and foreign interests at the expense of democracy and human rights at home

with the United States declining as a global hegemon, authoritarians are selling their allegiances to the highest bidder, with human rights, democracy, and accountability falling further by the wayside.

Since 2011, Russia has doubled down on its support for some of the most brutal regimes in the region.

About 60 percent of the region’s population are under 25 years old, and the dire socio-political and economic conditions that much of the Middle East’s youth face have changed little since the thwarted revolutions of 2011. Youth unemployment has, in fact, worsened over the past decade, increasing from 23.8 percent in 2010 to 27.2 percent in 2020. The lack of opportunities continues to fuel brain drains and mass migration across the region.

dictators driven by paranoia have continued to hollow out civil society, ensuring that no viable political alternative to their rule exists. Press freedom across the region has declined drastically; Egypt, for example, has become one of the world’s top jailers of journalists since President Abdel Fattah al-Sisi came to power in a military coup in 2013. In Tunisia, President Kais Saied has undone many of the country’s democratic advances by dissolving the government and enhancing his powers through a new constitution.

This aggressive trend has intensified in Palestine, too. Following the 2021 Unity Intifada, Israeli forces arrested hundreds of political activists and are now stepping up efforts to target civil society and human rights groups that expose Israeli war crimes and rights violations. Meanwhile, the Palestinian Authority has entrenched its role as a subcontractor of the Israeli occupation, stepping up arrests of political activists and resistance fighters alike across the West Bank at Israel’s behest.

A recent study by The Guardian and YouGov found that although a majority of respondents in Sudan, Tunisia, Algeria, Iraq, and Egypt do not regret the uprisings, more than half of those polled in Syria, Yemen, and Libya say their lives are now worse

By shutting down spaces for Iranians to realize their imagined future, Iran’s leaders have ensured that any substantial transfer of power will be violent

degrowth has come under severe criticism from pundits, mainstream economists, and the jet-setting Davos elite

austerity is always imposed for the sake of growth. We have been convinced, for half a century now, that cutting public services is good for us because it will increase competitiveness, balance the budget, and eventually lead to growth. Degrowth, by contrast, is the argument that we can, and should, move away from an economy that exclusively depends on economic growth.

infrastructure projects which will lock in fossil fuel use for decades continue to be built and expanded, while banks, energy companies and multinationals that are involved in polluting and carbon-intensive industries are bailed out with public money and given lucrative government contracts

Recessions make inequality worse, degrowth is about making sure everyone has their needs met. Recessions often cause bold policies for sustainability to be abandoned for the sake of restarting growth, while degrowth is explicitly for a rapid and decisive transformation.

Because profits are based on making labour and nature as cheap as possible, the very basis of profit is always at risk, for example, through labour shortages or supply bottlenecks. Thus, constant economic expansion will also see constant crises.

As argued by Naomi Klein in the book Shock Doctrine, crises are often taken advantage of by the owners of capital because they make it possible to thrash social and ecological legislation, thus lowering the costs of wages and resources, and further generating windfall profits through inflation.

While austerity increases inequality by curbing public services and benefitting the rich through tax cuts and privatisation of government services, degrowth policies focus on democratising production, curbing the wealth and overconsumption of the rich, expanding public services, and increasing equality within and between societies.

A recent UN report found that nine out of 10 countries worldwide have fallen behind on life expectancy, education and living standards. For decades, international organisations have promised to fight global inequality and poverty with growth – but the results are anything but promising.

guarantee access to “universal basic services” like housing, food, healthcare, mobility, and childcare to the general population, by taking them out of the market.

Germany’s three-month experiment with a $9 monthly ticket for all regional and city public transport could serve as an example. It not only reduced carbon dioxide emissions by 1.8 million tonnes – equivalent to powering about 350,000 homes for a year – but it also helped mitigate the effects of high inflation rates, increased freedom of mobility for all, and was quite popular with the public.

a 2020 research paper on energy sufficiency found that it is possible to provide a decent life to the entire global population at 40 percent of current energy use, despite population growth until 2050.

reducing the excess energy and resource use of the rich and making designs more efficient within the framework of a truly circular economy have huge potential to reduce demand

many people would likely possess fewer material objects – but most would have access to better services and society would be more sustainable, just, convivial, and fulfilling